Massachusetts Health & Accident
Insurance Exam Questions With Correct
Answers
Hazard |- |CORRECT |ANSWER✔✔-Situation |that |increases |chance |of |loss
Annuity |- |CORRECT |ANSWER✔✔-Policy |issued |by |an |insurance |company |to |promise |you |an |
income |that |can |last |you |a |lifetime
Insurer |- |CORRECT |ANSWER✔✔-An |insurance |company
Insured |- |CORRECT |ANSWER✔✔-A |person |or |business |covered |by |an |insurance |policy
Health |Insurance |- |CORRECT |ANSWER✔✔-Broad |field |of |insurance |plans |that |provide |
protection |against |financial |consequences |of |illness, |accidents, |injury, |and |disability
- |Paid |on |a |year-to-year |basis
- |Subject |to |periodic |premium |increases
- |Benefits |not |fixed
Medical |Expense |Insurance |- |CORRECT |ANSWER✔✔-Pays |benefits |for |nonsurgical |doctors' |fees
|commonly |rendered |in |a |hospital; |sometimes |pays |for |home |and |officecalls
Disability |Income |Insurance |- |CORRECT |ANSWER✔✔-Provide |a |replacement |income |when |
wages |are |lost |due |to |disability; |based |on |education, |training, |experience
,- |income |creates |limits
- |monthly |income |payments
- |highest |premium |= |14 |day |waiting |period |w/ |10 |year |benefit
- |ceiling |amount
Accidental |Death |and |Dismemberment |Insurance |(AD&D) |- |CORRECT |ANSWER✔✔-Provides |
the |insured |with |a |lump-sum |benefit |amount |in |the |event |of |accidental |death |or |
dismemberment |under |accidental |circumstances
Interim |Coverages |- |CORRECT |ANSWER✔✔-Term |insurance |for |a |period |of |months |or |less |by |
special |agreement |of |the |company; |it |permits |a |permanent |policy |to |become |effective |at |a |
selected |future |date.
Interim |- |CORRECT |ANSWER✔✔-the |intervening |time
Subrogation |- |CORRECT |ANSWER✔✔-the |right |for |an |insurer |to |pursue |a |third |party |that |
caused |an |insurance |loss |to |the |insured
Business |Continuation |Plans |- |CORRECT |ANSWER✔✔-continue |the |operation |of |the |business |
in |the |event |of |a |disabling |sickness |to |a |business |owner |or |key |employee
Employee |Benefit |Plans |- |CORRECT |ANSWER✔✔-- |help |employee |in |event |of |disabling |
sickness |or |injury
- |rare |to |not |include |provision |of |health |insurance/benefits
- |contributes |to |morale |and |productivity |of |employee
- |provides |needed |benefits |(helps |hold |down |demands |for |wage |increases)
- |gives |employer |tax |deductions
- |enhances |employer |image
, Business |Overhead |Expense |Insurance |- |CORRECT |ANSWER✔✔-- |sold |individually
- |designed |to |reimburse |business |for |overhead |expenses |in |the |event |a |business |owner |
becomes |disabled |(day |to |day |operations)
- |does |not |include |compensation |for |disabled |owner
- |premiums |are |tax-deductible |as |insurance |expense
- |benefits |are |taxable |income
Disability |Buy-Sell |Plan/Disability |Buy-Outs |- |CORRECT |ANSWER✔✔-An |agreement |between |
business |co-owners |that |provides |that |shares |owned |by |any |one |of |them |who |becomes |
disabled |shall |be |sold |to |and |purchased |by |the |other |co-owners |or |by |the |business |using |
funds |from |disability |income |insurance.
- |legal |binding |agreement |funded |with |disability |income |policy
- |pay |benefits |in |periodic |payments
- |buy-out |plan |contains |provision |allowing |for |a |lump-sum |payment |of |the |benefit
- |benefits |tax-free
- |premiums |not |tax |deductible
- |lengthy |elimination |periods |(2+ |yrs)
Key |Person |Disability |Insurance |- |CORRECT |ANSWER✔✔-- |pays |monthly |benefit |to |a |business |
for |additional |help |or |outside |services |when |an |essential |person |is |disabled
- |key |persons |economic |value |to |a |business |is |determined |by |potential |loss |of |business |income
|that |could |occur |(hiring |price)
- |business |= |owner |and |premium |payer |of |policy
- |benefits |tax-free
- |premiums |not |tax |deductible
- |policies |reserved |for |"hard |to |replace" |employees |or |key |sales |members
Insurance Exam Questions With Correct
Answers
Hazard |- |CORRECT |ANSWER✔✔-Situation |that |increases |chance |of |loss
Annuity |- |CORRECT |ANSWER✔✔-Policy |issued |by |an |insurance |company |to |promise |you |an |
income |that |can |last |you |a |lifetime
Insurer |- |CORRECT |ANSWER✔✔-An |insurance |company
Insured |- |CORRECT |ANSWER✔✔-A |person |or |business |covered |by |an |insurance |policy
Health |Insurance |- |CORRECT |ANSWER✔✔-Broad |field |of |insurance |plans |that |provide |
protection |against |financial |consequences |of |illness, |accidents, |injury, |and |disability
- |Paid |on |a |year-to-year |basis
- |Subject |to |periodic |premium |increases
- |Benefits |not |fixed
Medical |Expense |Insurance |- |CORRECT |ANSWER✔✔-Pays |benefits |for |nonsurgical |doctors' |fees
|commonly |rendered |in |a |hospital; |sometimes |pays |for |home |and |officecalls
Disability |Income |Insurance |- |CORRECT |ANSWER✔✔-Provide |a |replacement |income |when |
wages |are |lost |due |to |disability; |based |on |education, |training, |experience
,- |income |creates |limits
- |monthly |income |payments
- |highest |premium |= |14 |day |waiting |period |w/ |10 |year |benefit
- |ceiling |amount
Accidental |Death |and |Dismemberment |Insurance |(AD&D) |- |CORRECT |ANSWER✔✔-Provides |
the |insured |with |a |lump-sum |benefit |amount |in |the |event |of |accidental |death |or |
dismemberment |under |accidental |circumstances
Interim |Coverages |- |CORRECT |ANSWER✔✔-Term |insurance |for |a |period |of |months |or |less |by |
special |agreement |of |the |company; |it |permits |a |permanent |policy |to |become |effective |at |a |
selected |future |date.
Interim |- |CORRECT |ANSWER✔✔-the |intervening |time
Subrogation |- |CORRECT |ANSWER✔✔-the |right |for |an |insurer |to |pursue |a |third |party |that |
caused |an |insurance |loss |to |the |insured
Business |Continuation |Plans |- |CORRECT |ANSWER✔✔-continue |the |operation |of |the |business |
in |the |event |of |a |disabling |sickness |to |a |business |owner |or |key |employee
Employee |Benefit |Plans |- |CORRECT |ANSWER✔✔-- |help |employee |in |event |of |disabling |
sickness |or |injury
- |rare |to |not |include |provision |of |health |insurance/benefits
- |contributes |to |morale |and |productivity |of |employee
- |provides |needed |benefits |(helps |hold |down |demands |for |wage |increases)
- |gives |employer |tax |deductions
- |enhances |employer |image
, Business |Overhead |Expense |Insurance |- |CORRECT |ANSWER✔✔-- |sold |individually
- |designed |to |reimburse |business |for |overhead |expenses |in |the |event |a |business |owner |
becomes |disabled |(day |to |day |operations)
- |does |not |include |compensation |for |disabled |owner
- |premiums |are |tax-deductible |as |insurance |expense
- |benefits |are |taxable |income
Disability |Buy-Sell |Plan/Disability |Buy-Outs |- |CORRECT |ANSWER✔✔-An |agreement |between |
business |co-owners |that |provides |that |shares |owned |by |any |one |of |them |who |becomes |
disabled |shall |be |sold |to |and |purchased |by |the |other |co-owners |or |by |the |business |using |
funds |from |disability |income |insurance.
- |legal |binding |agreement |funded |with |disability |income |policy
- |pay |benefits |in |periodic |payments
- |buy-out |plan |contains |provision |allowing |for |a |lump-sum |payment |of |the |benefit
- |benefits |tax-free
- |premiums |not |tax |deductible
- |lengthy |elimination |periods |(2+ |yrs)
Key |Person |Disability |Insurance |- |CORRECT |ANSWER✔✔-- |pays |monthly |benefit |to |a |business |
for |additional |help |or |outside |services |when |an |essential |person |is |disabled
- |key |persons |economic |value |to |a |business |is |determined |by |potential |loss |of |business |income
|that |could |occur |(hiring |price)
- |business |= |owner |and |premium |payer |of |policy
- |benefits |tax-free
- |premiums |not |tax |deductible
- |policies |reserved |for |"hard |to |replace" |employees |or |key |sales |members
